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The NBA
Acquired
What's the Difference Between the Salary Cap and the Collective Bargaining Agreement?
In principle, there are caps on the amount that a team can pay in total salary costs for all their players. So it's designed to both creates imparoty within the league. And create, not paroty, but like some degree of parity within a team. This year the cap is set right around a hundred and nine million dollars. But that leads into the other interesting aspect of the m b a: There's a revenue sharing agreement amongst the teams. The luxury tax in the salary cap is related to this....
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